for Medical City and Other Projects as Certified by Department of Finance
In the end, the truth will always win. – Jose Rizal
Various projects, such as the Medical City and New Government Center, that are being undertaken by the administration of Gov. Manuel “Chaco” Sagarbarria is well within the financial capacity of the Provincial Government to pay. This is according to the findings of the Department of Finance, through the Bureau of Local Government Finance, and the Banko Sentral ng Pilipinas, through the Monetary Board.
The ongoing projects of the provincial government are currently the object of a massive disinformation campaign by people with vested interests who want to regain political power using all available means. The undertaking of these projects is not groundless as what these people would want everyone to believe.
Medical City
The Department of Health (DOH) recommends a hospital bed-to-population ratio of 1 bed per 1,000 people. On the other hand, the World Health Organization (WHO) recommends 2 beds per 1,000 people. Based on the 2020 Census, Negros Oriental has a population of approximately 1,432,990, with an annual growth rate of 1.18%. This would mean that in 2020, the province should ideally have had around 1,433 hospital beds to meet the recommended standard. As of 2024, the total bed capacity of hospitals in Negros Oriental is approximately 1,220 beds. In 2033, when the Medical City is expected to become fully operational, the needed bed capacity would be around 1,651 beds.
Based on the foregoing, people do have reason to be concerned about the inadequate patient space at the 250-bed Negros Oriental Provincial Hospital (NOPH), as well as privately-run hospitals in the city. Social media is full of video and photographs showing patients, including children, being treated along hallways or under the shade of trees outside the main NOPH building, especially during outbreaks of dengue and other illnesses. Public healthcare in the province faces a challenging reality: if given the choice, those who are sick would prefer to seek treatment at private healthcare facilities such as SUMC, Ace Doctors, Holy Child, and Negros Polymedic, rather than at the NOPH.
Indeed, the delivery of quality public healthcare is a perennial problem in Negros Oriental. The administration of the late Governor Roel R. Degamo tried to address this matter by completing in 2017 the construction of the NOPH Central Block building that was conceptualized during the term of the late Governor Emilio “Dodo” Macias II. However, with a steady increase in population, and more underprivileged people from neighboring localities like Siquijor, Southern Cebu and Northern Mindanao coming to the NOPH to avail of public healthcare, the bed capacity of the Central Block building is no longer suficient.
In response to this glaring public health issue, the Provincial Government under Governor Sagarbarria, with the support of the Sangguniang Panlalawigan, resolved to undertake the construction of the Negros Oriental Medical City, a modern 400-bed healthcare facility. The constituents of the province, especially the underprivileged, have long deserved this kind of a facility. One where they can go to with confidence and a sense of trust that is usually only felt by those who can aford private healthcare facilities.
New Government Center
As to the issue of the New Government Center, the dilapidated state of the facilities of the Provincial Government at the Capitol area have long been open for the public to see. Decaying buildings, roofs that leak during rain, huge rats that freely run around in ceilings, floors and walls that have holes, cramped workspaces, and many other workplace issues and hazards are not what people want to experience when they bring their concerns to the Provincial Government. There were eforts by the late Governor Degamo to address these concerns but did not come to fruition because of his untimely death.
Certainly, constituents and the employees of the Provincial Government have long deserved a government center that is safe, modern, clean, and well-equipped to provide eficient service to the public.
Capacity to Sustain Loan Payments
The loan that was obtained by the Provincial Government went through a rigorous and lengthy process for approval by government financial institutions, such as the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), the Department of Finance, through the Bureau of Local Government Finance, and the Banko Sentral ng Pilipinas, through the Monetary Board.
Anyone who has obtained from a regular commercial bank a loan knows how dificult the requirements and process are. For local government units (LGU) like Negros Oriental, the process for securing a loan is more stringent since the law requires not only approval from a government bank, but also clearance from national agencies like the Bureau of Local Government Finance and the Monetary Board.
Before a loan is approved by a government bank, one critical document that an LGU is required to obtain and submit is a Certification of Net Debt Service Ceiling (NDSC) and Borrowing Capacity (BC). This is a formal document issued to LGUs by the Bureau of Local Government Finance under the Department of Finance. No loan can be extended to an LGU by a government bank unless this certification is issued.
The certification is crucial for LGUs since it regulates their borrowing activities and ensures that they do not exceed their financial capabilities. The specific purposes of the Certification are as follows:
- Debt Management: The NDSC indicates the maximum amount of debt service that an LGU can handle, ensuring that they maintain fiscal responsibility and sustainability.
- Borrowing Capacity: The BC reflects the total amount that an LGU is allowed to borrow based on its financial health and revenue-generating capacity. This helps prevent over-leveraging and promotes sound financial practices among local governments.
The Bureau of Local Government Finance issued this certification in favor of the Provincial Government of Negros Oriental on May 23, 2024, under Certificate No. 07-2024-04-113.
The Certification is proof that in the sound and learned judgement of the Bureau of Local Government Finance, the Provincial Government of Negros Oriental is able to sustain paying the loan without need of raising provincial fees/taxes and sacrificing the basic delivery of services, such as, but not limited to health, social services, emergency response, infrastructure projects, and salaries and benefits for provincial employees, including increases that may be mandated by law.
Incremental Loan Releases
The loan is released by the government bank from where it was obtained not in full, but in incremental amounts spread through several years based on progress billing by the building contractor. All releases are required to be supported with documents checked and verified not only by the inspectorate teams of the government bank and provincial government, but also by the oversight committee of the Sangguniang Panlalawigan. Further, every centavo released and paid is subject to prevailing government accounting and auditing rules through the Commission on Audit.
Deeds, Not Words
The people of Negros Oriental do not have short memories as those with vested political interests would want to believe. While deceit was employed in the past electoral exercise, the truth eventually prevailed. The same pattern of disinformation is again being employed for the coming May 12, 2025 elections. Governor Sagarbarria is confident that the honest people of this province will see through the smoke and, in the end, will allow the truth to prevail.
The current administration of the Provincial Government assures the constituents of this province that it views its present mandate not as a license to do less, but a responsibility to do more to improve the lives of everyone. After all, real change is not through words but deeds.
